BOTHELL, Wash.--(BUSINESS WIRE)--Seattle Genetics, Inc. (Nasdaq:SGEN - News) announced today that it has entered into a worldwide collaboration agreement with Millennium: The Takeda Oncology Company, a wholly owned subsidiary of Takeda Pharmaceutical Company Limited (TOKYO:4502 - News), for the development of antibody-drug conjugates (ADCs).

Under the terms of the collaboration, Millennium will pay a $4 million upfront fee for an exclusive ADC license to an initial antigen expressed on solid tumors. Millennium also can exercise options for exclusive licenses to two other antigens upon payment of additional fees to Seattle Genetics. Millennium is responsible for research, product development, manufacturing and commercialization of all ADC products under the collaboration. Seattle Genetics will receive progress-dependent milestone payments and mid-single digit royalties from Millennium on worldwide net sales of any resulting ADC products. Seattle Genetics also will receive material supply and annual maintenance fees as well as research support payments for assistance provided to Millennium under the collaboration.

ADCs are empowered monoclonal antibodies that carry potent, cell-killing drugs. Seattle Genetics has developed proprietary technology employing synthetic, highly potent drugs that can be attached to antibodies through stable linker systems. The linkers are designed to be stable in the bloodstream and release the drugs under specific conditions once inside targeted cells. This approach is intended to spare non-targeted cells and thus reduce many of the toxic effects of traditional chemotherapy.

“Entering into ADC collaborations with world-class oncology companies such as Millennium is part of our strategy to leverage our proprietary technology to enhance our product portfolio and bring non-dilutive capital into the company,” said Eric L. Dobmeier, Chief Business Officer of Seattle Genetics. “To date, we have generated more than $75 million through ADC collaborations with leading biotechnology and pharmaceutical companies. These deals may provide even greater financial benefit for Seattle Genetics in the future through the receipt of milestones and royalties as ADC products advance through development.”

“The collaboration with Seattle Genetics enhances our pipeline by utilizing a novel technology to enable the use of our antibodies to precisely target delivery of anticancer medicines to the cancer rather than the whole patient,” said Deborah Dunsire, M.D., President and CEO of Millennium. “Overall, this supports our commitment to developing quality cancer treatments.”

Seattle Genetics is advancing its own proprietary pipeline of ADC programs, including SGN-35, which is in a pivotal trial for Hodgkin lymphoma and a planned phase II trial for systemic anaplastic large cell lymphoma (ALCL). The company is also developing a number of preclinical ADC programs, including SGN-75, which the company is advancing towards a planned 2009 investigational new drug submission for CD70-positive malignancies.

About Seattle Genetics

Seattle Genetics is a clinical stage biotechnology company focused on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer and autoimmune disease. The company’s lead product candidate, SGN-35, is in a pivotal trial under a special protocol assessment with the FDA. SGN-35 is empowered by Seattle Genetics’ proprietary ADC technology comprising highly potent synthetic drugs and stable linkers for attaching the drugs to monoclonal antibodies. In addition, Seattle Genetics has three other product candidates in ongoing clinical trials: dacetuzumab (SGN-40), lintuzumab (SGN-33) and SGN-70. Dacetuzumab is being developed under a worldwide collaboration with Genentech. Seattle Genetics has collaborations for its ADC technology with a number of leading biotechnology and pharmaceutical companies, including Genentech, Bayer, CuraGen, Progenics, Daiichi Sankyo, MedImmune, a subsidiary of AstraZeneca, and Millennium: The Takeda Oncology Company, as well as an ADC co-development agreement with Agensys, a subsidiary of Astellas Pharma. More information can be found at www.seattlegenetics.com.

About Millennium: The Takeda Oncology Company

Millennium: The Takeda Oncology Company combines the innovative science of a leading American biopharmaceutical company with the global assets of Japan’s largest pharmaceutical company. As the part of the Takeda family, we are a global center of excellence in oncology with a robust pipeline, focusing on disease pathways for a variety of cancers. Additional information about Millennium is available through its website www.millennium.com.

Certain of the statements made in this press release are forward looking, such as those, among others, relating to the therapeutic potential and future clinical progress, regulatory approval and commercial launch of products utilizing Seattle Genetics’ ADC technology. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include risks related to adverse clinical results as our product candidates or our collaborators’ product candidates move into and advance in clinical trials, risks inherent in early stage development and failure by Seattle Genetics to secure or maintain relationships with collaborators. More information about the risks and uncertainties faced by Seattle Genetics is contained in the Company’s Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission. Seattle Genetics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.